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PLI Vs SIP

CA Sanjay Majhi (Professional) (47 Points)

04 March 2018

is it PLI better than SIP from return safety taxability point ?

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10 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185674 Points)
Replied 04 March 2018

Actually both are totally different product....... You have to ascertain whether you wish more return at the cost of some risk......... or just get insured at the cost of almost nil return

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CA Sanjay Majhi (Professional) (47 Points)
Replied 04 March 2018

but Sir PLI gives more return in term of bonus as compared to sip in debt fund

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185674 Points)
Replied 04 March 2018

Yes, because of Governmental backing, but can't beat MF equity scheme SIP returns......

Secondly, bonus gets lost in case of surrender of policy...

CA Sanjay Majhi (Professional) (47 Points)
Replied 04 March 2018

Sir I have already equitymf sip and also term plan .I want invest in debt scheme that's why I opt for PLI instead of debt mf sip which is taxable

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185674 Points)
Replied 05 March 2018

only Rural PLI covers general public !!

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185674 Points)
Replied 05 March 2018

Well, PLI covers employees of Central and State Governments, Central and State Public Sector Undertakings, Universities, Government aided Educational institutions, Nationalized Banks, Local bodies, autonomous bodies, joint ventures having a minimum of 10% Govt./PSU stake, credit co-operative societies etc.

PLI also extends the facility of insurance to the officers and staff of the Defence services and Para-Military forces. Apart from single insurance policies, Postal Life Insurance also manages a Group Insurance scheme for the Extra Departmental Employees (Gramin Dak Sevaks) of the Department of Posts.

It does not cover general public, but Rural PLI !!

CA Sanjay Majhi (Professional) (47 Points)
Replied 05 March 2018

BUT IT ALSO INCLUDES PROFESSIONAL LIKE LAWYER , CA , DOCTOR ETC. I HAVE THE CIRCULAR.

CA Sanjay Majhi (Professional) (47 Points)
Replied 05 March 2018

HERE IS THE CIRCULAR

Attached File : 149218 20180305100054 circular.jpg downloaded: 314 times

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185674 Points)
Replied 05 March 2018

Yes, its good that professionals are also included under PLI, now......

But keep in mind that 'insurance is not investment'.....

It is security to the dependents......... but at the cost of return.

Even comparing it with debt fund is unwarrented........... as debt funds are just to safeguard capital erosin against inflation......... net earnings are meager as compared to other investment class......

CA Sanjay Majhi (Professional) (47 Points)
Replied 19 June 2018

If Insurance prem. Amt is 3.00L(One time) made after 1.04.2012.and matured value is 4.95L on 05.07.2017 what is the tax treatment ...TDS is deducted 194DA .....what about 3.00l DEPOSIT....only difference is taxable or not